Which of the following statements is likely to be made by an economist who believes in activist monetary policy? (1 ) The more closely monetary policy can be designed to meet the particulars of a given economic environment, the better. (2 ) Because of long and uncertain time lags, activist monetary policy may be destabilizing rather than stabilizing. (3 ) There is sufficient flexibility in wages
and prices in modern economies to allow the economy to equilibrate in reasonable speed at the natural level of Real GDP. (4 ) The "same-for-all-seasons" monetary policy is the way to proceed. (5 ) There is evidence that monetary policy in the mid-1970s caused a recession.
A) (1), (2), and (3)
B) (1), (4), and (5)
C) (1 ) and (5)
D) (4 ) and (5)
E) (1), (3), and (4)
C
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Suppose the nation of Alphonia was charged with dumping electric lawnmowers in the nation of Omegalon. The two reasons a nation like Alphonia would dump products in another nation are
A) import licensing and outsourcing. B) price discrimination and import licensing. C) price discrimination and predatory pricing. D) outsourcing and predatory pricing.
The Paradox of Value is resolved by the willingness for an individual to pay a high price for a good or service that has a high marginal utility per dollar
Indicate whether the statement is true or false